While customers look for discounts on e-commerce platform Wish, its richly priced initial public offering looks like it will raise more than $1 billion for its parent company, ContextLogic. The shares will trade on the Nasdaq Exchange under the WISH stock ticker. So what do you need to know about the Wish IPO?
That IPO looks like it is priced at the top of range between $22 and $24 seen earlier for the 46 million shares offered.
What is Wish? Well, ContextLogic sees the platform as the discount version of Amazon (NASDAQ:AMZN). It focuses on selling lower-cost home goods, electronics and apparel, all available via its mobile app and online marketplace. Just like Amazon, Wish also believes that it has benefitted from the novel coronavirus pandemic.
Google Engineer Turned CEO
Wish is led by CEO Peter Szulczewski, a former Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) engineer who founded the marketplace in 2010. He wanted to create a more affordable e-commerce platform than Amazon, specifically targeting low-income and middle-income customers.
Investors should note that Szulczewski will have more than 80% of the total voting power.
Wish IPO: A Discount E-commerce Story
Wish is another way for investors to dive into the red-hot world of e-commerce, which has crossed a threshold this year, delivering essential items, work-from-home comforts and everything in between. It seeks to ride the wave of Amazon’s success but with a twist, focusing on less affluent customers. Can it succeed?
There is certainly a reason to think so, but with a few caveats.
As InvestorPlace Web Content Producer Sarah Smith highlighted, Wish is still unprofitable.
“Additionally, there is reason for concern over its business model. What do I mean? Well, one thing investors learned from its U.S. Securities and Exchange Commission filing is that Wish has very strong ties to China. In fact, most of its merchants are based in China, and they primarily sell to consumers in the U.S. and Europe. Earlier in the pandemic, this structure weighed on Wish.”
Still, WISH stock is going to be one to watch. While you may have missed the IPO, no doubt there’ll be more opportunities ahead.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.